More than half of all active listings nationwide remained on the market for over two months in February, according to a recent Redfin report. This marks the highest percentage of "stale" listings since 2019, reaching 52.2%, up from 50.1% a year ago.
This trend indicates a significant slowdown in buyer activity, impacting mortgage professionals by reducing transaction volume and increasing market uncertainty.
Record Value Of Unsold Homes
The value of homes on the market for more than 60 days reached $347 billion in February. The total inventory of homes for sale was valued at $636 billion, remaining largely unchanged from the previous year. This represents the largest dollar amount on record for this time of year, with the exception of 2025, when it was 0.01% higher. This high value of unsold homes is attributed to a lack of buyer demand.
An earlier report indicated a record 630,000 more home sellers than buyers in the market, contributing to longer sales times. Redfin stated, "Home buying demand is slow." Home sales decreased by 3.1% year over year in February. Buyers are hesitant due to high mortgage rates, elevated home prices, and economic uncertainty, including concerns about layoffs, inflation, and geopolitical events.
While some sellers have withdrawn from the market, many continue to list properties, hoping to capitalize on still-high home values. However, home values are rising at a slower rate, with a 1% year-over-year increase.
Days On Market Reach Decade High
The typical home that went under contract in February spent 66 days on the market. This represents the slowest pace for this time of year in a decade, further illustrating the challenges in the housing market.
"Sellers know it’s a buyer’s market, but they still want to get as much money as they can for their homes," said Jason Gale, a Redfin agent in New Orleans. "So they list on the high end, expecting buyers to negotiate down, and that’s leading to listings staying on the market for a long time."
Gale noted that while deals are available, "nine times out of 10, homes are selling for under their asking price." In other instances, he added, the price is "just too high, and sellers have to pull their home off the market after six months or so."
Regional Disparities In Stale Listings
Stale listings are most prevalent in Miami, Florida, where nearly two-thirds of properties have been on the market for two months or more. In San Antonio, Texas; Pittsburgh, Pennsylvania; and West Palm Beach, Florida, almost three out of every five listings are considered stale. In these markets, excluding Pittsburgh, sellers outnumber buyers by more than a two-to-one margin.
Conversely, old listings are least common in the San Francisco Bay Area. In San Jose, California, one in five listings are stale, representing the smallest share among major metropolitan areas. San Francisco, California, follows with one in four, and Oakland, California, with three out of 10.
Impact On Mortgage Professionals
The increase in stale listings and longer days on market directly impacts mortgage loan originators and brokers. Reduced transaction volume means fewer loan applications and slower closings. Mortgage professionals must adapt to a market where buyers have more negotiating power and properties spend more time on the market. This environment necessitates a focus on educating clients about current market conditions, managing expectations regarding pricing and sales timelines, and exploring options for buyers facing high interest rates.
